News Highlight:
The Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) Scheme has been extended beyond March, 2022.
Extended Scheme provisions:
- Extension of lending period till December 2024.
- Introduction of 3rd loan of up to ₹50,000 in addition to 1st & 2nd loans of ₹10,000 and ₹20,000 respectively.
- Extension of ‘SVANidhi Se Samriddhi’ component for all beneficiaries of PM SVANidhi scheme across the country.
PM SVANidhi:
- About:
- It is a central sector scheme launched in June 2020. It aims to provide micro-credit facilities to street vendors affected due to COVID-19 pandemic.
- The scheme was announced as a part of the Economic Stimulus-II under the Atmanirbhar Bharat Abhiyan.
- It has been implemented since 1st June 2020, for providing affordable working capital loans to street vendors to resume their livelihoods that have been adversely affected due to Covid-19 lockdowns.
- Objectives of PM SVANidhi:
- To give vendors access to affordable working capital loans that can help them resume their livelihood activities post-countrywide lockdown (due to the pandemic.)
- To incentivize regular repayment of loans by provisions like cash-back, higher loans on subsequent demands etc.
- To promote digitalization by rewarding vendors who opt for digital repayments of loans.
- Funding:
- It is a Central Sector Scheme i.e., fully funded by Ministry of Housing and Urban Affairs.
- Achievements:
- As on November 30, 2022, 31.73 lakh Street Vendors have availed benefit of 1st loan of ₹ 10,000 loan.
- Out of these 5.81 lakh have availed benefit of second loan of ₹ 20,000 loan.
- Out of those who availed 2nd loan, 6,926 street vendors have availed benefit of third loan of ₹50,000.
- Eligibility of States/UTs:
- The Scheme is available for beneficiaries belonging to only those States/UTs which have notified Rules and Scheme under Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014.
- As reported by the States/UTs, a total of 13,403 vending zones have been identified so far.
- Target:
- 42 lakh street vendors are to be provided benefits under PM SVANidhi Scheme by December, 2024
- Conclusion:
- The extension of lending till December 2024, would assist in institutionalizing the access to formal credit channels, provide an assured source of credit to help them plan their business expansion, increasing the adoption of digital transactions, reducing the impact of potential NPAs on the Lending Institutions and providing holistic socio-economic upliftment for the Street Vendors and their families.
Pic Courtesy: National Portal of India
Content Source: PIB